Safe and Sound

TOLEDO POLICE

Toledo, OH
4
Star Rating
TOLEDO POLICE is an NCUA-insured credit union started in 1940 and currently headquartered in TOLEDO, OH. Regulatory filings show the credit union having assets of $35.4 million, as of December 31, 2017.

Members have $15.0 million on deposit tended by 8 full-time employees. With that footprint, the credit union has amassed loans and leases worth $15.0 million. Its 3,226 members currently have $31.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, TOLEDO POLICE exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three key criteria Bankrate used to grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is an essential measurement of an institution's financial strength. It acts as a buffer against losses and affords protection for members when a credit union is struggling financially. From a safety and soundness perspective, the more capital, the better.

On our test to measure capital adequacy, TOLEDO POLICE received a score of 14 out of a possible 30 points, coming in below the national average of 15.65.

TOLEDO POLICE's capitalization ratio of 14.00 percent in our test was worse than the average for all credit unions, suggesting that it's weaker than its peers.

Asset Quality Score

Bankrate uses this test to estimate the effect of troubled assets, such as past-due loans, on the credit union's loan loss reserves and overall capitalization.

A credit union with lots of these kinds of assets may eventually be forced to use capital to absorb losses, decreasing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, pushing down earnings and increasing the risk of a future failure.

TOLEDO POLICE scored 40 out of a possible 40 points on Bankrate's test of asset quality, beating out the national average of 38.09.

The credit union's ratio of problem assets was 0.00 percent in our test, lower than the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability has an effect on its safety and soundness. A credit union can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, potentially making the credit union better prepared to withstand economic shocks. Conversely, losses reduce a credit union's ability to do those things.

On Bankrate's test of earnings, TOLEDO POLICE scored 12 out of a possible 30, better than the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting that it's beating its peers in this area.

WHAT IS SAFE & SOUND?

Bankrate.com's Safe & Sound Ratings provide a star rating system to evaluate the current financial status of financial institutions. The information gathered about banks, credit unions and thrifts is updated as set forth in the Terms of Use of Safe & Sound Ratings and Reports. The Safe & Sound Ratings information is grouped by categories of banks, thrifts and credit unions.

Scoring methodology

Bankrate.com evaluates the financial condition of institutions and assigns a one- to five-star rating for each with five stars representing the highest rating. Institutions with satisfactory performance will generally receive a rating of three or more stars. The majority of institutions fall into the three- to four-star range. An institution with an "NR" rating may be too new to rate or may have limited the publicly available information in their regulatory filings. The "NR" is not an indication of financial strength or weakness. The Safe & Sound rating is believed to be reliable, but the information is not guaranteed. In addition, events since the information was collected may have altered the institution's financial condition.